The Gartner Group estimates that construction costs for the average data center amount to $465 per square foot and can take up to 12 months to build. This means constructing an adequate data center would most likely cost you millions of dollars, not to mention the time and personnel to evaluate vendors, site location, building criteria, environmental systems, hardware and software. And, this estimate does not include capital investments in data processing or sourcing servers, communication equipment and other IT hardware. 724 Internet Solutions has already done all of the legwork for you.

Transferring your data center to 724 Internet Solutions outsourced environment will not only save you money, it will lower your total technology costs by freeing up your IT staff to concentrate on running your business. And, by putting your technology in the hands of a capable, experienced provider, you can be sure that every factor has been considered to make sure your applications, data and equipment are in a table, secure environment. We will help you make a smooth transition to your new by project managing and implementing the entire migration quickly and within your budget.

Comparative Cost of In-House vs. Hosting in the Cloud

Year 1

In-House

The Cloud

Server Hardware

$100,000

$0.00

Router/CSU/DSU

$12,500

$0.00

UPS Backup

$20,000

$0.00

Software Licensing

$25,000

$0.00

Hardware servicing fees (15% depreciation)

$7000.00

$0.00

Staffing

$200,000

$0.00

DS-3 Internet Connectivity

$35,000

$0.00

Initial Configuration/Setup

$10,000

$10000

Hosting Fee

$0.00

$60,000

Hardware and Software Support

$0.00

$42,000

Generator Backup

$15,000

$0.00

Total Expense for Year One

$424.500.00

$112,000.00

Year 2

In-House

Outsourcing

Hardware servicing fees (15% depreciation)

$7000.00

0.00

Staffing

$200,000

0.00

Software Licensing

$25,000

0.00

DS-3 Internet Connectivity

$35,000

0.00

Hosting Fees

$0.00

$60,000

Hardware and Software Support

$0.00

$42,000

Total Expense for Year Two

$267,000.00

$112,000.00

OUTSOURCE SAVINGS — YEAR ONE

$312,500.00

OUTSOURCE SAVINGS — YEAR TWO

$155,000.00

Why Companies Outsource to the Cloud:

The cost of implementing the necessary steps required to host a web site, Intranet or Local Area network is probably the biggest reason why 62% of companies outsource this activity. A server is merely the first of many purchases and ongoing expenditures required for hosting applications. In addition to the expected upfront and ongoing costs, upgrading hardware and software and replacing malfunctioning parts can create unexpected expenditures.

When outsourcing, the hosting company takes care of these issues at no additional cost. When outsourcing, your site can be live in days, rather than in the weeks or months it may take to purchase equipment and hire technical personnel. A web hosting company has a server to meet your needs in stock now, and has the personnel on-staff to set your site up quickly.The table abovecompares the operating costs in the first two years of an in-house operation versus outsourcing. Of course, these costs are estimates and may differ for any one specific situation.